Winn, 84, has been retired longer than many people have been working. He left his job as a chemical engineer in 1977, the year Jimmy Carter came into office and Star Wars opened in theaters.
Winn, who retired from his job as a chemical engineer at 56, says he's been investing for more than 50 years, concentrating mainly on companies he knew through work. He started when he banded together with a few friends to buy stock of his employer, Hercules Co. Back then, commissions were extremely steep, and buying in round lots - 100 shares or more - meant big savings. Eventually, the company began a savings plan and matched contributions at 25%.
Saving as much as you can.
People often concentrate on their rate of return. But the single biggest factor that determines the size of your retirement kitty is how much you invest. Put away $500 a month for 30 years, and you'll have about $1.1 million - if you earn 10% a year. Save $900 a month, and you'll have $1.1 million, too, but you'll only have to earn a more realistic 7% a year.
Heck didn't just stuff his IRAs every year and hope for hot returns He funded his company's 401(k) savings plan, too, and formed an investment club with a friend. They ran it for 15 years, and it eventually grew to 30 members.
Investing in stocks for the long term.
"My suggestion is to start early and put a good deal of it in stocks or mutual funds," says Winn. Even though the stock market has had all the charm of a dead mackerel the past five years, the historical evidence is clear: Stocks have gained an average 10.4% a year since 1926, vs. 3.7% a year for ultrasafe Treasury bills.
Seems to be quite a few engineers that FIRE. Coincidence? This guy is pretty right on but I don't necessarily like the # of stocks and funds (31 and 42) he holds. But then again he's the one that has been retired since I was born.
http://biz.yahoo.com/usat/051025/13189392.html
Winn, who retired from his job as a chemical engineer at 56, says he's been investing for more than 50 years, concentrating mainly on companies he knew through work. He started when he banded together with a few friends to buy stock of his employer, Hercules Co. Back then, commissions were extremely steep, and buying in round lots - 100 shares or more - meant big savings. Eventually, the company began a savings plan and matched contributions at 25%.
Saving as much as you can.
People often concentrate on their rate of return. But the single biggest factor that determines the size of your retirement kitty is how much you invest. Put away $500 a month for 30 years, and you'll have about $1.1 million - if you earn 10% a year. Save $900 a month, and you'll have $1.1 million, too, but you'll only have to earn a more realistic 7% a year.
Heck didn't just stuff his IRAs every year and hope for hot returns He funded his company's 401(k) savings plan, too, and formed an investment club with a friend. They ran it for 15 years, and it eventually grew to 30 members.
Investing in stocks for the long term.
"My suggestion is to start early and put a good deal of it in stocks or mutual funds," says Winn. Even though the stock market has had all the charm of a dead mackerel the past five years, the historical evidence is clear: Stocks have gained an average 10.4% a year since 1926, vs. 3.7% a year for ultrasafe Treasury bills.
Seems to be quite a few engineers that FIRE. Coincidence? This guy is pretty right on but I don't necessarily like the # of stocks and funds (31 and 42) he holds. But then again he's the one that has been retired since I was born.
http://biz.yahoo.com/usat/051025/13189392.html
